The merged company adopted the well-known US Airways Group name and was based in America West's former corporate offices in Tempe.

[3] In December, 2004, America West Holdings Corporation announced interest in buying part of ATA Airlines, but did not submit a bid.

[citation needed] On May 19, 2005, America West Holdings Corporation and US Airways Group announced plans to merge their operations.

Doug Parker, America West's chief executive, said the merger would create "the nation's first full-service airline with the customer-friendly pricing structure of a low-fare carrier.

ACE Aviation would also provide other services for the new company, including ground handling, training, and operation of regional jets.

Such cooperation was expected to bring more traffic to Air Canada from the merged carriers, and lead to a code-sharing alliance in the future.

In the weeks leading up to the merger announcement, Phoenix-area media reported that local passengers worried about cuts in service to the city's Sky Harbor International Airport, where America West has its largest hub; such things have happened before when US Airways (or a predecessor company) merged with a regional airline.

America West Holdings was merged into Barbell Acquisition Corporation, a subsidiary of the new US Airways Group, on September 27, 2005.